Compass Group SA (Pty) Ltd v van Tonder and Others (JR260/13) [2016] ZALCJHB 160; (2016) 37 ILJ 1413 (LC) (2 March 2016)

Compass Group SA (Pty) Ltd v van Tonder and Others (JR260/13) [2016] ZALCJHB 160; (2016) 37 ILJ 1413 (LC) (2 March 2016)

The Labour Court held that, as the arbitration award was issued before 1 January 2015, section 145(9) of the LRA did not apply. The review application did not interrupt prescription, and the answering affidavit's prayer to confirm the award as an order of court did not constitute a valid application or process interrupting prescription under section 15 of the Prescription Act. The court was bound by the Labour Appeal Court's decision in Metrobus, which confirmed that, prior to the amendment, review proceedings did not interrupt prescription. Consequently, the arbitration award in favour of the employee prescribed three years after the debt became due, and the employee was deprived of the...

Citation
[2016] ZALCJHB 160
Parties
Applicant: Compass Group SA (Pty) Ltd; Respondent: Chris van Tonder; Respondent: Commissioner T D Lynch; Respondent: CCMA
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
2 March 2016
Case Number
JR 260/13
Procedural Posture
Review Application / Judgment on Prescription of Arbitration Award
Outcome
The arbitration award of 14 September 2012 in favour of the employee has prescribed and is no longer enforceable.
Judges
Steenkamp
Legal Topics
Prescription of Arbitration Award, Review of Arbitration Award, Labour Relations Act, Interruption of Prescription, Unfair Dismissal
Labour Law Civil Procedure Prescription of Arbitration Award Review of Arbitration Award Labour Relations Act Interruption of Prescription Unfair Dismissal

Case Brief

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Parties

Compass Group SA (Pty) Ltd

Applicant

Chris van Tonder

Respondent

Commissioner T D Lynch

Respondent

CCMA

Respondent

Procedural Posture

Review Application / Judgment on Prescription of Arbitration Award

Legal Issues

  1. 1 Does the institution of review proceedings in terms of section 145 of the LRA interrupt the running of prescription for an arbitration award issued before 1 January 2015?
  2. 2 Does a prayer in an answering affidavit to confirm an arbitration award as an order of court interrupt prescription?
  3. 3 Has the arbitration award in favour of the employee prescribed under the Prescription Act?

Ratio Decidendi

The Labour Court held that, as the arbitration award was issued before 1 January 2015, section 145(9) of the LRA did not apply. The review application did not interrupt prescription, and the answering affidavit's prayer to confirm the award as an order of court did not constitute a valid application or process interrupting prescription under section 15 of the Prescription Act. The court was bound by the Labour Appeal Court's decision in Metrobus, which confirmed that, prior to the amendment, review proceedings did not interrupt prescription. Consequently, the arbitration award in favour of the employee prescribed three years after the debt became due, and the employee was deprived of the...

Court Disposition

The arbitration award of 14 September 2012 in favour of the employee has prescribed and is no longer enforceable.

Orders

  • The arbitration award of 14 September 2012 has prescribed.